The story
History: facts, each with its source
Wikipedia says an open differential always sends equal torque to both wheels, so a wheel that slips limits what the wheel with grip gets. A limited-slip differential limits the difference in speed between the two shafts to keep a minimum of traction.1
Wikipedia names several kinds. A clutch type has a stack of thin clutch discs. A viscous type uses silicone fluid to resist a difference in speed. A geared type, such as the Torsen, uses worm and spur gears and does not bind up the way some others do. An electronic type has a computer control the clamping force on its clutch.1